SA government wants this budget to go away, Smithson
Its delivery is done and dusted but the media and Opposition won’t forget the state budget’s $54 billion dollar debt “looming faster than the first truck through the new South Road tunnels”, Mike Smithson argues.
The political hype and reaction surrounding the state budget isn’t what the Treasurer presents to parliament but, usually, how his performance is received during the annual media lockup.
It shouldn’t be that way, but it is.
Last Thursday’s budget papers and their contents didn’t become lawfully official until he got to his feet at 3pm and delivered a one hour, 10-page statement to the House of Assembly.
By that time, the media had already trawled through a well-prepared pack of press releases and reams of official financial balance sheets with the Treasurer subjected to blunter questions than he’d ever receive soon after inside the House of Assembly chamber.
With 31 budgets now under the belt, across five decades, I’ve seen a thing or two and have noticed the changes, some more subtle than others.
Back in John Bannon’s fateful days as Premier and Treasurer, well before the State Bank disaster, he would deliver a bland set of figures without the help of a well-produced PowerPoint presentation.
The media conferences were short and tailored, because the main game was across the road in parliament.
The Weatherill-era adopted a new look with the major players entering such media gatherings with an awkwardly held manifesto booklet featuring a glossy cover with a pertinent and catchy headline promoting their vision for the future.
That imagery, largely aimed at television cameras, was mocked by the Opposition and Steven Marshall, at the time, as contrived and almost comical.
That was until he adopted the same look when Weatherill’s tactics helped him to victory in 2014.
Sure enough, the Premier and Treasurer both arrived at last week’s budget lockup, clutching their glossy vision statements as if they were security blankets.
These days governments consider the media mood as important as the mood of their political opponents.
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I went along this year determined to get some answers on issues I’ve recently raised in InDaily.
The top-secret contingency amount, built-in for cost overruns and unforeseen bungles in the $15.4 billion North-South corridor project, is still under wraps but is undoubtedly greater than I first guessed.
The Treasurer saw my question coming a mile off.
“We’re in an alliance and I’m not telling our alliance partners how much money I’ve got tucked away if things cost more, or things go wrong,” Treasurer Tom Koutsantonis said.
“I can tell you this; the contingency is large and larger than you’ve estimated.
“I am very confident that we can deliver this project on budget.”
On that basis I would suggest the contingency amount could be up to 30 per cent of the entire project budget, which would set aside $5 billion to ensure it’s completed right down to the last painted line marking.
I also questioned whether he’d be revealing new money set aside for the Nyrstar smelter deal at Port Pirie.
That ongoing operation is still up in the air as its owners seek considerable financial assistance.
There’s no current threat of Nyrstar abandoning the regional city, but nerves will remain frayed until an agreement is reached.
But “don’t look at me” seemed to be the Treasurer’s response.
He says the commonwealth is the main player here.
Koutsantonis says the plant’s future revolves around the production of antimony, a specialized metallurgical component for hardening ammunition, armoured tanks and missiles.
Our sovereign risk comes from global giants in China who have the antimony market cornered.
So, our country’s future defence relies on the product from Port Pirie and, in turn, that relies on federal input.
Fair enough.
My last burning issue was the future of embattled Electoral Commissioner Mick Sherry, who’s still on unexplained leave, with no date set for his return.
It’s now 80 days since the bungled election process with a full independent review underway into the fiasco.
Stay informed, daily
The Treasurer confirmed that he’s still on paid leave, presumably Sherry’s full whack of his $325,000 a year deal, plus superannuation.
Mr Koutsantonis openly shares many of the current concerns.
Bear in mind that nurses were striking on budget day at Lyell McEwen Hospital for a modest pay rise after long running and fruitless negotiations with the government.
That’s not the look the government wanted as a backdrop to any Sherry-related questions.
“I think a lot of people are asking questions about how the last election was conducted by our independent Electoral Commission,” the Treasurer explained.
“I understand your outrage at this.
“The commission is independent and rightly so, the parliament demanded it.
“He answers to the parliament not to the Minister.
“I could tell you what happened in my seat of West Torrens, and I was horrified and I’ll be making a submission myself as an ordinary member.
“I think the parliament might be having something to say about that (the electoral process) but I accept the point that you are making”.
Sherry’s termination can only occur if decided by both houses of parliament given his appointment as an independent commissioner.
My understanding is that once the review is completed, his future will be quickly decided.
By the end of the media conference, the Treasurer was tipping that this budget would soon be old news and that the government would get on with business.
But the media and the Opposition are hardly likely to forget the $54 billion dollar state debt which is looming faster than the first truck through the new South Road tunnels.
The government wants this budget to go away because it has more important tasks than re-explaining the stuck-record rhetoric of our soaring debt.
It has more than three years to repair any damage done to its fiscally responsible image.
By the 2030 election campaign, the risky business of borrowing money could be far worse.
But given Labor’s commanding nine-seat majority in the House of Assembly, up against a war-torn Opposition, the threat of losing power is almost nonexistent.
It’s also about perceptions and appearances.
Those glossy booklets will remain tucked under their arms for many weeks to come.
Mike Smithson is weekend newsreader and political analyst for 7News.
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